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Unknown error : preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in decode_entities() . Ordering online for delicacies and local crafts from the Western Visayas region will soon be easier as leading telecoms and digital services provider PLDT, together with Voyager Innovations, the Department of Trade and Industry , and Go Negosyo recently held an e-commerce workshop for small business owners under the #Ready Economic Growth Campaign in the region.
Providing for consideration of H.R. 5515, NDAA FY, 2019; providing for consideration of S. 204, Trickett Wendler, Frank Mongiello, Jordan McLinn, and Matthew Bellina Right to Try Act of 2017, and providing for consideration of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act
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Arlington, Va. – Americans for Prosperity today called on House lawmakers to pass the Economic Growth, Regulatory Relief and Consumer Protection Act (S.2155), providing relief to regional and community banks suffering under the burdensome regulations of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (H.R. 4173). Ahead of an expected vote Tuesday, AFP is announcing it will be scoring the legislation on its congressional scorecard and is urging House lawmakers to vote “Yes”.
In a key vote letter sent to lawmakers Monday, AFP called on the House to pass the bipartisan bill crafted by Senate Banking Committee Chairman Mike Crapo (R-ID) easing federal restrictions on community banks and reducing the cost of regulatory compliance.
AFP Chief Government Affairs Officer Brent Gardner issued the following statement:
“Businesses and communities have suffered too long under harmful and counterproductive Obama-era financial restrictions. The consequences can be seen on Main Streets across the country as Dodd-Frank created barriers to the American Dream for millions of families and businesses.
“Thanks to the efforts of Chairman Crapo, House leadership and House Financial Services Chairman Jeb Hensarling, Republicans and Democrats now have an opportunity to work together to provide relief for the hardworking men and women who are the foundation of their vibrant communities.
“We urge House members to vote ‘yes’ on Dodd-Frank repeal and look forward to supporting Chairman Hensarling in his effort to advance additional House-passed financial reforms through the Senate.”
Since the passage of the 2,300-page Dodd- Frank law in 2010, AFP has advocated for an end to harmful regulations that force small financial institutions out of business due to increased compliance and burden consumers with higher costs.
In 2017, AFP championed Chairman Jeb Hensarling’s Financial Choice Act 2.0 and in 2018 worked with lawmakers in the House and Senate to advance meaningful bipartisan reform.
AFP Pens Letter in Support of CHOICE Act (6/27/2017)
Where Have All the Small Banks Gone? (8/25/2016)
For further information or to set up an interview, please send an email to [email protected].
Americans for Prosperity (AFP) exists to recruit, educate, and mobilize citizens in support of the policies and goals of a free society at the local, state, and federal level, helping every American live their dream – especially the least fortunate. AFP has more than 3.2 million activists across the nation, a local infrastructure that includes 36 state chapters, and has received financial support from more than 100,000 Americans in all 50 states. For more information, visit www.AmericansForProsperity.org
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Earlier this week, Seattle’s city council voted unanimously for a harmful tax increase on businesses grossing $20 million a year.
Described as a “literal tax on jobs” and a “head tax,” under the new law, nearly 600 large Seattle companies, including Amazon and Starbucks, will be required to pay an annual tax of $275 per “head,” or full-time employees, for the next five years.
The Seattle city council stated its intention to use funds from the tax hike to pay for low-income housing and homeless services.
While well-intended, the policy is flawed and will ultimately hurt those it was intended to help. The tax increase will burden businesses and ultimately drive away future investors and job creators, leading to fewer jobs and opportunities for those who need them most.
Seattle-Based Businesses Fire Back
More than 100 business executives, entrepreneurs and investors responded with a letter opposing the tax, on the grounds that it would stifle future economic growth.
The group stated that the tax increase would send the message to businesses that “if you create too many jobs in Seattle, you will be punished.”
The head-tax plan also led Amazon to suspend construction on an expansion project in Seattle which would serve as an office for 7,000 employees, pending the city council’s decision.
Imposing a head tax punishes businesses for their success and discourages economic growth, hiring and future investment in the city. As the Seattle Times notes,
Amazon’s actions implied that the technology and commerce giant would add 7,000 fewer jobs in Seattle if the tax were implemented.
An economic-impact study commissioned by the Seattle Metropolitan Chamber of Commerce found that those 7,000 jobs represent $908 million in direct wages a year, hundreds of millions more in lost compensation for employees at businesses that sell to Amazon and reduced economic activity more broadly.
Amazon’s decision to push back against the city council’s tax hike did not go unnoticed. One union-backed activist group, Working Washington, responded to Amazon’s actions by comparing Amazon CEO Jeff Bezos to “a subprime mob boss lording it over a company town.”
In an extreme reaction, the progressive group then argued that Amazon should be charged with a felony and accused Amazon of violating a state law which makes it illegal to threaten politicians or public employees.
A Hostile Environment for Businesses
The Seattle city council’s head-tax plan originally called for businesses to pay $500 per employee annually, but after pushback from Amazon, Starbucks and other Seattle-based companies, the council reduced the proposed tax increase to $275.
After pausing its 17-story Block 18 expansion project until after the city council decision, Amazon ultimately decided to resume construction, but Amazon Vice President Drew Herdener stated,
We are disappointed by today’s City Council decision to introduce a tax on jobs. … While we have resumed construction planning for Block 18, we remain very apprehensive about the future created by the council’s hostile approach and rhetoric toward larger businesses, which forces us to question our growth here.
Herdener also highlighted Seattle’s revenue growth over the past seven years, stating, “the city does not have a revenue problem – it has a spending efficiency problem.”
Starbucks Senior Vice president of Public Affairs and Social Impact John Kelly also criticized the tax and pointed to the city’s reckless spending, stating,
This City continues to spend without reforming and fail without accountability, while ignoring the plight of hundreds of children sleeping outside. If they cannot provide a warm meal and safe bed to a five-year-old child, no one believes they will be able to make housing affordable or address opiate addiction.
Seattle-based businesses recognize how detrimental the head tax will be, not only for their companies, but for the future economic climate in Seattle as a whole.
Head Tax Repealed in Chicago
The head tax has historically been a flop — and a nightmare for both businesses and consumers.
Chicago’s $4-per-employee head tax on employers with more than 50 full-time workers seems quaint when contrasted with Seattle’s $275 head tax. But for medium- to large-sized companies across Chicago, that $4-per-employee tax added up.
The head tax was in place from 1973 to 2012 and proved so detrimental to employers that it was eventually ended by Mayor Rahm Emanuel.
Emanuel called the head tax “a job killer,” stating in 2011 that “eliminating the head tax is the right thing to do for businesses big and small.” In 2012, the tax was reduced to $2 per employee and was repealed by 2014.
The Head Tax’s Impact in the Future
In the future, cities should look to cut spending rather than raise revenue through harmful and misguided policies like a head tax.
Rather than impose tax increases, lawmakers should support competitive, pro-growth policies that will foster innovation, competition and economic growth in their city or state.
In Seattle’s case, rather than help the poor find jobs, raising taxes on businesses will do the opposite by driving job-creators out of the city and discouraging future investment. Washington State has a unique advantage as a state with no income tax, but Seattle’s new head tax significantly undermines that benefit.
High state tax rates are already driving residents away from California and New York, which economists predict will lose millions of residents in the coming years.
Businesses react similarly when faced with high taxes and adverse economic conditions. Imposing massive new tax increases on businesses will ultimately lead to fewer jobs, fewer opportunities and stifled economic growth for everyday Americans.
Seattle businesses and workers will unfortunately pay the price for their local lawmakers’ foolish decision, but hopefully it will serve as a warning for leaders elsewhere to avoid making the same costly mistake.
Read more about Seattle’s new tax on businesses here.
The post Seattle-Based Businesses Push Back Against Job-Killing Head Tax appeared first on Americans for Prosperity.